CUBA LIFE

June 4

Coffee shop got a conversion rate of 523%

What if you could make a small investment in your business that resulted in a conversion rate of a whopping 523%? That's what happened when Cuba Life Kaffebar in Kristiansand introduced a loyalty program for its customers. The marketing strategy paid off, resulting in more returning customers than ever before!

Jose Corado makes a lovely Cappuchino at Cuba Life Coffee Bar in Kristiansand.

Thanks to the loyalty program at Cuba Life Coffee Shop, Corado is able to serve more customers in less time and encourage his best customers to come back, again, and again. In addition, he has a tool that delivers an incredibly high conversion rate at a fraction of what similar results would have cost with social media, email, and search engine advertising.

The Cuba Life Kaffebar loyalty program has grown rapidly and is incredibly easy to manage and operate with the help of the loyalty platform Diller.

About Cuba Life Coffee Bar

Cuba Life coffee shop is a specialty coffee shop that also offers Cuban cigars. It is run by general manager José Corado who handles the product all the way from beans to finished cup of coffee. Located in the heart of Kristiansand, the café is a quiet and relaxing place to sip a cup of gourmet coffee and smoke a cigar if you feel like it.

It is one of the oldest genuine coffee shops in the city and over the years it has gained a great reputation for quality coffee and a friendly, welcoming atmosphere.

« To calculate the 523% conversion rate, we compared the number of customers with the number of subsequent visits. In other words, on average, each customer who registered has returned to the store 5 times. Thanks to the loyalty program, these customers came back and bought more, again, and again! »

The problem

One of the biggest challenges Cuba Life Coffee Shop faced was understanding the behavior of their customers with a limited marketing budget. They were looking for a way to understand their customers' habits and behaviors.

Based on this, the team at Cuba Life Coffee Shop sought to find a way to increase the number of visits and the amount of revenue per customer. Furthermore, they sought a solution that would not only help them sell more coffee, but also create a better and more personalized experience for everyone who entered their coffee shop.

Although general manager José Corado wasn't actively seeking a solution like Diller, he was immediately intrigued when Diller contacted him.

Diller is a program that makes it easy for any business to create a robust loyalty program. This allows small businesses (like Cuba Life Kaffebar) to identify and retain their best customers. Investing in a loyalty program can result in more positive reviews, increased member acquisition, and more purchases over time.

“One of the biggest challenges Cuba Life Kaffebar faced was understanding the behavior of their customers with a limited marketing budget. They were looking for a way to understand their customers’ behavior and habits.”

The solution

When Diller contacted me, I thought Diller would be a very useful tool for the coffee shop industry, especially if you know how to read and understand data,” says Corado.

Diller works by inviting customers to become members of the loyalty program and giving them access to benefits such as coupons and electronic coupons.

Corado decided to install and test the loyalty program at Cuba Life Coffee Shop. Diller gave him a QR scanner that he plugged into his computer at the checkout. He advertised the new system with posts on Instagram and Facebook, as well as small flyers and personal announcements in the store.

The advantage

523% conversion rate

To calculate the 523% conversion rate, we compared the number of customers to the number of subsequent visits. In other words, on average, each customer who registered had returned to the store 5 times. Thanks to the loyalty program, these customers came back and bought more, again, and again!

Compared to results from social media advertising, this conversion rate is extremely high. According to Adweek, the average conversion rate for social media is only 0.71%. Search engine advertising is 1.95% and Email marketing is 3.19%. When it comes to encouraging customers to return to the store, Diller offers by far the best return on a single marketing budget.

« Compared to results from social media advertising, this conversion rate is extremely high. According to Adweek, the average conversion rate for social media is only 0.71%. Search engine advertising is 1.95% and Email marketing is 3.19%. When it comes to encouraging customers to come back to the store, Diller offers by far the best return on a single marketing budget. »

Faster service

One of the most important practical results Corado experienced was that he was able to serve his customers faster.

“We can serve a customer at least a minute faster,” he said, “and that’s really helpful during rush hour.” (A minute may not seem like a long time, but it can really feel like it when you’re on your way to work and you really need your caffeine fix.)

Additionally, as Corado points out, these minutes will come in handy during rush hour and make a big difference in the customer experience.

Not only will customers be happier because they get their coffee faster, but the cafe will also be able to serve more customers during busy times (and make more money).

A sense of exclusivity

“I was able to create a ‘coffee club’ for all of our customers,” says Corado, “so they feel like we can provide better and more personalized service to them.”

This sense of exclusivity is a very powerful marketing tool. By creating this special “club,” Corado is able to make its customers feel like they are members of an important group. Customers can also log in to their own profile to access coupons and special offers.

Being part of an exclusive group, as well as having access to loyalty benefits, gives customers an extra level of confidence. This also fulfills a need for a sense of belonging, which creates a powerful emotional feeling and desire to make a purchase.

It also makes you feel like you're "missing out" if you don't take advantage of the benefits.

Better access to customer data

Corado also notes that Diller provided access to more information about his clients so he can better understand their behavior.

“Diller gives us a faster way to identify customer behavior, and can also help us reach them in a more personalized way,” explains Corado.

Diller allows businesses to create segmented lists based on registered data for their members. This allows businesses to create advertising that is more specific to a particular segment of their customer base.

“Diller gives us a faster way to identify customer behavior, and can also help us reach them in a more personalized way,” explains Corado.

The results

Thanks to the loyalty program at Cuba Life Coffee Shop, Corado is able to serve more customers in less time and encourage his best customers to come back, again, and again. In addition, he has a tool that delivers an incredibly high conversion rate at a fraction of what similar results would have cost with social media, email, and search engine advertising.

The Diller loyalty platform is an ideal software for small and medium-sized businesses (such as restaurants, shops, and coffee shops) that want to offer a loyalty program for their customers without a large and expensive marketing budget.